Microsoft, LacViet and Gold Long John Dong Nai reached an amicable settlement

Gold Long John Dong Nai undertook to make a public apology and compensated Microsoft and Lac Viet for 100% the value of pirated software (approximately VND 1 billion).

Gold Long John Dong Nai, based in Nhan Trach, Dong Nai Industrial Zone, is a 100% Taiwanese investment capital company specializing in production of shoe fabric for Nike, Adidas, Converse and others.

Microsoft and LacViet have discovered Gold Long John to infringe the copyright of Window XP, Window Server and LacViet Dictionary since March 2012. After several times to meet and request Gold Long John to cease and desist the illegal acts but failed, Microsoft and LacViet filed a request with the Inspectors of Ministry of Culture, Sport and Tourism (MoCST) who is responsible for the handling of copyright infringement. On June 16th 2013 the MoCST’s inspectors in collaboration with the Police Department Anti Hi-Tech Crimes (C50) conducted a surprise raid on the Gold Long John’s premises and found out a number of Microsoft and LạcViet’s software being illegally installed in 69 computers for business purpose. The total value of the pirated software was amounted to USD 45,000. Gold Long John admitted its infringing acts, but afterwards did not take the appropriate measures to remedy the consequences. 

For and on behalf of Microsoft and LạcViet, Pham & Associates recently has instituted a civil claim against Gold Long John in the People Court of Dong Nai Province, seeking a recovery of damages, an undertaking not to repeat the infringement and a public apology via mass media from Gold Long John.

One of the motivation factors was that according to the prevailing legislation, an administrative monetary sanction does not exceed the limit of VND 500 million. Actually, the penalty is not enough deterrent effect from committing further infringement where in many cases which is much smaller than the damage suffered from the rights holders and the benefits gained by the infringers.

In light of the anticipated serious punishment can be ordered by the Court, on January 17th 2014 Gold Long John agreed to sign an amicable settlement with Microsoft and LacViet. As Gold Long John has completed its obligations in the agreement, on February 19th 2014 Pham & Associates withdrew the petition as the result.

The case also marked a milestone forwards in the fight against software infringement in Vietnam. According to the Business Software Alliance’s statistics, the rate of software piracy in Vietnam is still very high in comparing with those of regional countries. The rate reduced from 92% in 2004 to 80-81 % during 2011-2012, but was still higher compared to 60% in average in the region.

For more information, please contact Pham & Associates at hanoi@pham.com.vn

Pham & Associates